Targeting and Positioning
What is market segmentation? explain its
Explain the importance/advantages/need
for market segmentation?
Briefly describe the bases of market
What is niche marketing? Explain its
advantages to marketers and to
Meaning of Marketing
Dividing the total market into different
parts/segments on certain bases &
exploiting each segment fully for the
purpose of marketing & sales promotion.
Market segmentation is a new
customer-oriented philosophy and is
consistent with modern marketing concept
which is consumer-oriented.
Markets consists of buyers & buyers differ in
one or more respects. They differ in their
wants, resources, geographical locations,
buying attitudes and buying practices. Any
of these variables can be used to segment
Philip Kotler :
The act of dividing a market into distinct groups of
buyers who might require separate products and/or
William J.Stanton :
Market segmentation is the process of dividing the total
heterogeneous market for a good or service into several
segments, each of which tends to be homogeneous in all
John Frain :
The philosophy of directing products and services of
specific target groups is termed marketing segments.
Features of Marketing
Segmentation means dividing total market.
Objectives of segmentation.
Facilitates sales promotion.
Facilitates combination of 4Ps.
Operates as promising marketing strategy.
Levels of Market segmentation.
Factors influencing marketing
Better marketing performance
Appropriate adjustment of marketing mix.
Introduction of appropriate distribution strategy
Better service to consumers
Adjustment with diverse expectations of consumers.
Suitable designing of products.
Appropriate price fixation
Timing of marketing/advertising/sales promotion efforts.
Facilitates appropriate marketing programmes.
Objectives of segmentation
To select most suitable market segment.
To promote sales.
To make the marketing activity consumer-
To find out new convenient and promising
To study purchase potential of buyers.
Bases of Marketing Segmentation
Segementation as per marketing conditions.
Segementation as per volume of Purchase.
Bases of Segmentation
(Industrial Goods Market)
Segmentation as per the features of the
buyers i.e. industrial users.
Segmentation as per the type of
Segmentation as per the Geographic
location of the purchasers.
Segmentation as per buying capacities of
customers i.e. industrial users.
Features of a good Segment
Easily measurable Easily accessible
Viable segment Economic ability to
Adequately profitable Promising demand
Homogeneous Availability of data
Steps in Segmentation
Survey of existing market.
Scrutiny of market information.
Selection of promising segment
Finalizing appropriate marketing mix
Advantages of Market
Facilitates customer-oriented marketing
Facilitates suitable marketing mix
Facilitates effective product strategy
Facilitates the selection of promising markets
Facilitates exploitation of better marketing opportunities.
Facilitates selection of proper marketing programme.
Provides proper direction to marketing efforts.
Facilitates effective advertising
Provides special benefits to small firms.
Facilitates optimum use of resources
Limitations of Market Segmentation
Too much concentration on few segments is dangerous.
Rational segmentation is difficult.
Excessive segmentation leads to fragmentation.
Limited contribution in solving marketing problems
Consumer behaviour is unpredictable.
Difficult to introduce.
Miscellaneous limitations of market segmentation.
Inadequate market information & data.
Changing marketing environment.